Roach: “A repositioning of the Big Three economies has potentially important implications for global rebalancing. A post-bubble retrenchment of the American consumer should undoubtedly provide cyclical relief to the US current account deficit (see my 29 September dispatch, “Cyclical Rebalancing”). But the sustainability of any such improvement depends on whether the rest of the world — in this case, Japan and Germany — can convert productivity gains into consumer-led growth dynamics. The jury remains out on that count. Without progress on labor market reforms and retirement security, households in Japan and Germany may remain predisposed toward saving. But if those problems can successfully be tackled and consumption support starts to kick in, the outcome could be a huge plus for global rebalancing.”

Berner: “The Fed has trained market participants to think of inflation expectations as an important guide to policy…”

“Friends in High Places?” by Tim Iacono

"Diatribes Of A Deflationist 2 - Why They Are Still Wrong" by David Petch